It Looks Like IF Bancorp, Inc.'s (NASDAQ:IROQ) CEO May Expect Their Salary To Be Put Under The Microscope
Key Insights
IF Bancorp's Annual General Meeting to take place on 20th of November
CEO Chip Hasselbring's total compensation includes salary of US$425.0k
Total compensation is similar to the industry average
Over the past three years, IF Bancorp's EPS fell by 13% and over the past three years, the total loss to shareholders 23%
IF Bancorp, Inc. (NASDAQ:IROQ) has not performed well recently and CEO Chip Hasselbring will probably need to up their game. Shareholders will be interested in what the board will have to say about turning performance around at the next AGM on 20th of November. They will also get a chance to influence managerial decision-making through voting on resolutions such as executive remuneration, which may impact firm value in the future. We present the case why we think CEO compensation is out of sync with company performance.
View our latest analysis for IF Bancorp
Comparing IF Bancorp, Inc.'s CEO Compensation With The Industry
At the time of writing, our data shows that IF Bancorp, Inc. has a market capitalization of US$46m, and reported total annual CEO compensation of US$820k for the year to June 2023. We note that's a decrease of 8.6% compared to last year. In particular, the salary of US$425.0k, makes up a fairly large portion of the total compensation being paid to the CEO.
In comparison with other companies in the American Banks industry with market capitalizations under US$200m, the reported median total CEO compensation was US$668k. This suggests that IF Bancorp remunerates its CEO largely in line with the industry average. What's more, Chip Hasselbring holds US$982k worth of shares in the company in their own name.
Component | 2023 | 2022 | Proportion (2023) |
Salary | US$425k | US$400k | 52% |
Other | US$395k | US$497k | 48% |
Total Compensation | US$820k | US$897k | 100% |
Speaking on an industry level, nearly 43% of total compensation represents salary, while the remainder of 57% is other remuneration. It's interesting to note that IF Bancorp pays out a greater portion of remuneration through salary, compared to the industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.
IF Bancorp, Inc.'s Growth
IF Bancorp, Inc. has reduced its earnings per share by 13% a year over the last three years. In the last year, its revenue is down 12%.
The decline in EPS is a bit concerning. And the fact that revenue is down year on year arguably paints an ugly picture. These factors suggest that the business performance wouldn't really justify a high pay packet for the CEO. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has IF Bancorp, Inc. Been A Good Investment?
Since shareholders would have lost about 23% over three years, some IF Bancorp, Inc. investors would surely be feeling negative emotions. So shareholders would probably want the company to be less generous with CEO compensation.
In Summary...
Not only have shareholders not seen a favorable return on their investment, but the business hasn't performed well either. Few shareholders would be willing to award the CEO with a pay raise. At the upcoming AGM, management will get a chance to explain how they plan to get the business back on track and address the concerns from investors.
CEO compensation can have a massive impact on performance, but it's just one element. That's why we did some digging and identified 2 warning signs for IF Bancorp that investors should think about before committing capital to this stock.
Important note: IF Bancorp is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
